Exchange-Traded Funds

Transcription

1 Exchange-Traded Funds NORTH AMERICA MICHAEL JABARA Morgan Stanley Wealth Management JOHN DUGGAN Morgan Stanley Wealth Management CHRISTOPHER K. BAXTER Morgan Stanley Wealth Management US ETF Weekly Update - Weekly Flows: $19.1 Billion Net Inflows - Sixth Consecutive Week of Net Inflows Totaling $93.2 Billion - YTD Net Inflows of $265.9 Billion - High-conviction ETF Recommendations: No Changes - ETF Assets Stand at $2.5 Trillion, up 20% in Restaurant ETF to Close - Oppenheimer Funds Shutters ETF As with any investment, ETFs have risks. These include the general risks associated with investing in the underlying assets, potential tracking error, and the possibility that particular indices may lag other market segments or active managers. In addition, ETFs investing in international markets may include currency and geopolitical risks, while fixed income ETF risks also include credit and interest rate risk. Leveraged, Inverse, and Leveraged Inverse ETFs have unique risks, which are reviewed on slide 11. We define exchange-traded funds as encompassing passively and actively managed exchange-traded funds. This report is focused on U.S.-listed exchange-traded funds. These funds are registered with the SEC and trade as a single stock under SEC exemptions. U.S. listed, open-end fund ETFs must be offered under and sold only pursuant to a Prospectus. U.S.-listed ETFs may not be marketed or sold in a number of jurisdictions and may not be suitable for all investors. Morgan Stanley Wealth Management Sales Personnel should check with the Legal Department to clarify whether they may market the ETFs in a particular jurisdiction. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. Morgan Stanley Wealth Management does and seeks to do business with companies covered in Morgan Stanley Wealth Management Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Wealth Management Research. Investors should consider Morgan Stanley Wealth Management Research as only a single factor in making their investment decision.

2 US-Listed ETFs: High-conviction ETF Recommendations Below are our highest-conviction ETF recommendations, drawing on published strategy from Morgan Stanley Wealth Management s Global Investment Committee and Morgan Stanley & Co. s Institutional Research group Ticker Name Fund Focus Investment Rationale VOO Vanguard S&P 500 ETF US Equity-Large-Cap May benefit from a rebound in global growth, but with lower volatility and more defensive characteristics than other equities. IJR ishares Core S&P Small-Cap ETF US Equity-Small-Cap May benefit from low energy costs, a better labor market, pick-up in consumer spending, and increased M&A. XLF Financials Select Sector SPDR US Equity-Sector Growth in shareholder return and better relative estimate achievability may drive sector higher. KRE SPDR S&P Regional Banking ETF US Equity-Sector May benefit from wage growth, housing improvement, increased consumer confidence, and rising rates. XLV Health Care Select Sector SPDR US Equity-Sector Valuations attractive following recent pullback and EPS growth should be above average. XBI SPDR S&P Biotech ETF US Equity-Sector Industry is supported by sales and margin growth, less stretched valuations, along with M&A potential. VGK Vanguard FTSE Europe ETF International Equity-Europe Long-term value persists amid growth and political headwinds. DBEU Deutsche X-Tracker MSCI Europe Hedged Equity Fund International Equity-Europe Long-term value persists amid growth and political headwinds; hedge from potential currency weakening. EZU ishares MSCI EMU ETF International Equity-Europe Long-term value persists amid growth and political headwinds. DXJ WisdomTree Japan Hedged Equity Fund International Equity-Japan Positive bias amid political and structural changes taking place; we anticipate Yen to weaken. IEMG ishares Core MSCI Emerging Markets ETF International Equity-EM Valuations are attractive and with currency depreciation behind us, EM equities are positioned to perform well. GXC SPDR S&P China ETF International Equity-China Signs of renewed growth, policy measures should continue to help, and government has additional tools. INDA ishares MSCI India ETF International Equity-India Anticipate monetary stimulus, lower inflation, positive longer view based on demographics, globalization, and political reforms. FPE First Trust Preferred Securities and Income ETF Fixed Income-Preferred Actively managed fund offers favorable yield and financials exposure along with duration partially mitigated by fixed to float emphasis. BKLN PowerShares Senior Loan Portfolio Fixed Income-Senior Loan Appealing sector given floating rate exposure, long-term risk adjusted return history, and slow US recovery. SRLN SPDR Blackstone/GSO Senior Loan ETF Fixed Income-Senior Loan Actively managed fund providing exposure to floating rate senior loan sector. Source: Morgan Stanley Wealth Management ETF Research. 2

3 US-Listed ETFs: Estimated Flows by Market Segment ETFs posted net inflows of $19.1 bln last week; sixth consecutive week of net inflows totaling $93.2 bln - YTD, ETFs have generated net inflows of $265.9 bln - Last week s net inflows were led by US Large-Cap ETFs at $8.8 bln; conversely, Commodity ETFs posted net outflows of $911 mln, the most of any category that we measured - Thirteen of the 15 categories that we measured posted net inflows last week - ETF assets stand at $2.5 tln, up 20% in week flows remain positive among most asset classes; combined $119.3 bln in net inflows - Over the last 13 weeks, equity ETFs have posted net inflows of $108.8 bln vs. $14.8 bln for the Fixed Income ETF category - US Large-Cap ETFs had net inflows of $44.5 bln over the last 13 weeks, the most of any measured segment and significantly more than the next largest segment, US Sector & Industry ($18.6 bln) - On the other hand, Commodity ETFs have exhibited net outflows of $5.9 bln over the last 13 weeks, one of three segments to have posted net outflows (Leveraged/Inverse and Currency were the other two) Net Cash Flow ($ Mil) Mkt Cap Market Investment Objective Funds 1-Week 4-Week 13-Week ($ Mil) Share (%) US Broad-Market ,544 5,221 98,925 4 US Large-Cap 67 8,783 20,107 44, , US Mid-Cap 34 2,867 6,519 7, ,123 6 US Small- & Micro-Cap 42 2,916 6,196 15, ,250 5 US Sector & Industry 189 (325) 2,942 18, , US Custom ,362 65,083 3 US Dividend Income ,502 3, ,044 4 Leveraged/Inverse (692) 31,954 1 International - Developed 268 2,802 5,715 5, , International - Emerging ,924 3, ,320 5 Global ,851 61,680 2 Fixed Income ,047 14, , Commodity 35 (911) (4,308) (5,886) 56,170 2 Currency (66) (18) 2,405 0 Active ,325 29,063 1 Total 1,767 19,137 50, ,297 2,523, Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Flow data estimated as of 12/16/16 based on daily change in share counts and daily NAVs. 3

4 US-Listed ETFs: Estimated Largest Flows by Individual ETF PowerShares QQQ (QQQ) posted net inflows of $2.6 bln last week, leading all ETFs - QQQ s net inflows last week essentially offset the fund s prior two weeks of net outflows - The ishares Russell 2000 ETF (IWM) posted net inflows of $724 mln last week and $7.2 bln over the last 13 weeks - The PowerShares Senior Loan Portfolio (BKLN) generated net inflows of $538 mln last week and $2.0 bln over the last 13 weeks as investors pile into floating rate securities amid rising interest rates - On the contrary, the SPDR Gold Trust (GLD) had another week of net outflows, at $751 mln; GLD has exhibited net outflows for six consecutive weeks totaling $4.3 bln - The SPDR Retail ETF (XRT) posted net outflows of $323 mln last week; XRT s net outflows make up 76% of its current market cap - Despite an increase in interest rates last week, the SPDR S&P Regional Banking ETF (KRE) had net outflows of $223 mln for the week Net Inflows Net Outflows Net Cash Flow ($ Mil) Mkt Cap ETF Name Symbol 1-Week 4-Week 13-Week ($ Mil) PowerShares QQQ QQQ 2, ,649 41,214 Vanguard Mid-Cap ETF VO 1,584 1,751 1,411 18,064 ishares Core S&P 500 ETF IVV 1,037 3,687 8,424 91,547 SPDR Dow Jones Industrial Average ETF DIA 816 1,155 1,658 14,803 ishares Russell 2000 ETF IWM ,179 37,892 Vanguard Small-Cap ETF VB 623 1, ,664 SPDR S&P 500 ETF SPY 618 5,846 15, ,659 PowerShares Senior Loan Portfolio BKLN 538 1,023 2,002 7,544 ishares MSCI EAFE ETF EFA (213) 59,048 Vanguard Value ETF VTV 506 1,068 2,219 27,383 SPDR Gold Trust GLD (751) (2,937) (3,970) 30,503 ishares iboxx $ Investment Grade Corporate Bond ETF LQD (532) (2,164) (3,340) 27,166 SPDR S&P MidCap 400 ETF MDY (371) ,785 ishares Cohen & Steers REIT ETF ICF (345) (449) (510) 3,439 SPDR Retail ETF XRT (323) (373) (137) 425 SPDR Bloomberg Barclays High Yield Bond ETF JNK (236) ,831 Consumer Staples Select Sector SPDR XLP (229) (342) (934) 7,624 SPDR S&P Regional Banking ETF KRE (223) (402) 363 3,172 ishares iboxx $ High Yield Corporate Bond ETF HYG (190) 1,601 2,347 17,623 VanEck Vectors Semiconductor ETF SMH (189) (86) (29) 611 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Flow data estimated as of 12/16/16 based on daily change in share counts and daily NAVs. 4

5 US-Listed ETFs: ETF Dollar Volume ETF monthly $ volume as a % of listed trading volume jumped to 28% in November, up from October s 26% reading; over the last five years, ETF monthly $ volume as a % of listed trading volume averaged 27% Post-election ETF trading volume surged, accounting for more than 30% of US-listed trading volume on certain days Over the last five years, volume as a % of listed trading volume peaked at 32% in June 2013 ETF $ volume was up $97 bln relative to the prior week and 27% above its 13-week average US Large-Cap ETFs accounted for 38% of ETF $ volume last week, nearly 500 bps more than the segment s 13-week average Monthly ETF Dollar Volume as a % of Listed Trading Weekly Dollar Volume by ETF Market Segment $8,000 Non-ETF Dollars Traded ($ Bil) 45% Dollar Volume ($ Bil) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 ETF Volume ($ Bil) ETF Percentage (right axis) 40% 35% 30% 25% 20% 15% 10% 5% ETF as % of Market 1-Week ETF 1-Week ETF 13-Week ETF 13-Week ETF Market Cap Investment Objective Funds Vol ($ Mil) Vol Shr (%) Avg Vol ($ Mil) Avg Vol Shr (%) Shr (%) US Broad-Market 21 3, , US Large-Cap , , US Mid-Cap 34 7, , US Small- & Micro-Cap 42 33, , US Sector & Industry , , US Custom 152 3, , US Dividend Income 34 3, , Leveraged/Inverse , , International - Developed , , International - Emerging , , Global , , Fixed Income , , Commodity 35 11, , Currency 17 1, Active 159 1, , Total 1, , , $0 0% Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research, NYSE Arcavision. Monthly data as of 11/30/16; weekly data as of 12/16/16. Non-ETF Dollars Traded + ETF Volume=Total Listed Volume. 5

6 US-Listed ETFs: Short Interest Data Unchanged: Based on data as of 11/30/16 ishares Russell 2000 ETF (IWM) had the largest increase in short interest, at $920 mln - IWM s shares short at 119 mln are at their highest level since 9/30/15 - Notably, the two largest high yield bond ETFs, ishares iboxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg Barclays High Yield Bond ETF (JNK), had big increases in short interest last period at $814 mln and $685 mln, respectively - Conversely, the SPDR S&P 500 ETF (SPY) had a decline in short interest of $1.6 bln, the most of any ETF ETFs exhibited short interest increases, while 657 experienced short interest declines over the last period - Aggregate ETF USD short interest increased by $3.0 bln over the period ended 11/30/16 The average shares short/shares outstanding for ETFs is currently 3.1%, up from 2.8% last period - The ProShares Short VIX Short-Term Futures ETF (SVXY) was the most heavily shorted ETF as a % of shares outstanding, at 229% ETF Name - The CurrencyShares Euro Trust (FXE) and CurrencyShares Japanese Yen Trust (FXY) remain heavily shorted with shares short greater than 100% - Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only eight ETFs exhibited shares short as a % of shares outstanding greater than or equal to 100%) Change in Short Interest Shares Short as % of Shares Outstanding Symbol ishares Russell 2000 ETF IWM 919,798,863 ishares MSCI Emerging Markets ETF EEM 897,298,391 ishares iboxx $ High Yield Corporate Bond ETF HYG 814,356,346 SPDR Bloomberg Barclays High Yield Bond ETF JNK 685,359,807 ishares MSCI Brazil Capped ETF EWZ 614,110,450 SPDR S&P 500 ETF SPY (1,630,915,358) Vanguard FTSE Emerging Markets ETF VWO (359,898,473) ishares Core S&P 500 ETF IVV (320,872,249) ishares Nasdaq Biotechnology ETF IBB (305,444,985) VanEck Vectors Semiconductor ETF SMH (296,280,904) Last Change in USD Amount Held Short ETF Name Symbol Shares Short / Shrs Out (%) ProShares Short VIX Short-Term Futures ETF SVXY CurrencyShares Euro Trust FXE SPDR Oil & Gas Exploration & Production ETF XOP SPDR MSCI Germany StrategicFactors ETF QDEU SPDR Retail ETF XRT VanEck Vectors Semiconductor ETF SMH Franklin LibertyQ International Equity Hedged ETF FLQH CurrencyShares Japanese Yen Trust FXY ishares U.S. Real Estate ETF IYR 64.1 ProShares UltraShort Bloomberg Crude Oil SCO 61.6 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Short Interest data are only reported bi-monthly with a lag. Data compares short interest from 11/30/16 vs. 11/15/16. 6

7 US-Listed ETFs: Most Successful Recent Launches by Assets $5.7 bln in total market cap of ETFs less than 1-year old - Over the last year, US Custom ETFs have experienced 45 launches, the most of any measured category; US Custom ETFs account for 25% of recently launched market share - Recently launched US Custom ETFs generated net inflows of $464 mln over the last 13 weeks, the most of any category; we classify many smart beta strategies as US Custom - Two hundred and eighteen new ETF listings, 94 closures, and a merger in 2016 The top 10 most successful launches make up 49% of the market cap of ETFs launched over the past year - Eight ETF sponsors and two asset classes (equity and fixed income) were represented in the top 10 most successful launches - Despite not cracking the top 10 most successful launches exhibit, the ishares MSCI EAFE ESG Optimized ETF (ESGD) had $100 mln in net inflows last week, the most of any recently launched ETF; a number of sustainable investing ETFs have come to market over the last year - Over the last year, ETFs issued by State Street Global Advisors have captured $1.2 bln in assets, the most of any ETF issuer; however, the SPDR S&P North American Natural Resources ETF (NANR) accounts for 67% of this market cap Estimated Flows for ETF Launches Over Past Year Net Cash Flow ($ Mil) Mkt Cap Market Investment Objective Funds 1-Week 4-Week 13-Week ($ Mil) Share (%) US Broad-Market US Large-Cap US Mid-Cap US Small- & Micro-Cap US Sector & Industry US Custom , US Dividend Income Leveraged/Inverse 11 2 (4) (7) 68 1 International - Developed , International - Emerging Global Fixed Income 22 (21) Commodity Currency Active Total ,420 5, Top 10 Successful Launches Over Past Year Symbol Fund Name Mkt Cap ($ Mil) NANR SPDR S&P North American Natural Resources ETF (7) DDWM WisdomTree Dynamic Currency Hedged International Equity Fund SHE SPDR SSGA Gender Diversity Index ETF FVC First Trust Dorsey Wright Dynamic Focus 5 ETF FLQE Franklin LibertyQ Emerging Markets ETF PSC Principal U.S. Small Cap Index ETF AGGP IQ Enhanced Core Plus Bond U.S. ETF 212 (21) (35) VIGI Vanguard International Dividend Appreciation ETF VYMI Vanguard International High Dividend Yield ETF DWIN PowerShares DWA Tactical Multi-Asset Income Portfolio Total 2,777 (10) (5) Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Data estimated as of 12/16/16 based on daily change in share counts and daily NAVs. 1-Week Flows ($ Mil) 4-Week Flows ($ Mil) 7

8 US-Listed ETFs: New Listings for the Week Symbol Fund Name JHMD John Hancock Multifactor Developed International ETF 12/16/ Launch Date Tracks an index of international developed market stocks outside of North America that are selected based on size, valuation, and profitability factors. DIVO Amplify YieldShares CWP Dividend & Option Income ETF 12/14/ Actively managed ETF of US dividend paying stocks that opportunistically writes calls on these stocks. NULG NuShares ESG Large-Cap Growth ETF 12/14/ Tracks an index of US large-cap growth stocks that meet certain environment, social, and governance criteria. NULV NuShares ESG Large-Cap Value ETF 12/14/ Tracks an index of US large-cap value stocks that meet certain environment, social, and governance criteria. NUMG NuShares ESG Mid-Cap Growth ETF 12/14/ Tracks an index of US mid-cap growth stocks that meet certain environment, social, and governance criteria. NUMV NuShares ESG Mid-Cap Value ETF 12/14/ Tracks an index of US mid-cap value stocks that meet certain environment, social, and governance criteria. NUSC NuShares ESG Small-Cap ETF 12/14/ Tracks an index of US small-cap stocks that meet certain environment, social, and governance criteria. Expense Ratio (%) Source: Bloomberg, ETF Issuers, Morgan Stanley Wealth Management ETF Research. 8

9 US-Listed ETFs: News Highlights Restaurant ETF to Close - In a recent press release, ETF Managers Group, LLC announced plans to close the Restaurant ETF (BITE). - The last day of trading for BITE will be 12/22/16. Oppenheimer Funds Shutters ETF - Effective 12/15/16, the Oppenheimer Navellier Overall A-100 Revenue ETF (RWV) ceased trading and will liquidate. Source: Morgan Stanley Wealth Management ETF Research, ETF Managers Group, Oppenheimer Funds. 9

10 Recent Reports ETF Semi-Annual Review: $2.4 Trillion in 1,755 ETFs - November 29, Year-End ETF and CEF Tax Strategies - November 8, Q16 ETF Fund Flows-$91.3 Billion Net Inflows; ETF Net Inflows Accelerate For Record Third Quarter - October 25, 2016 Investment Primer: ETFs - July 5, 2016 ETF Tracking Error: Tracking Error Reaches Decade Low - February 26, 2016 Morgan Stanley Wealth Management and its affiliates do not provide fundamental research ratings on exchange-traded funds (ETFs). 10

11 Leveraged, Inverse & Leveraged Inverse Conclusions and Risks 1) Leveraged, Inverse, and Leveraged Inverse (L&LI) ETFs generally capture a high percentage of their expected daily returns, particularly on a net asset value basis. L&LI ETFs are not appropriate for all investors. However, we believe they can be appropriate tools for some investors looking to make short-term tactical trades if they perceive a high likelihood of a strong market move occurring in a relatively short time period. In strong trending markets, being on the right side of the trade with L or LI ETFs can lead to very strong returns. Investors should not expect these ETFs to deliver total returns linked to their benchmarks over any period other than daily. The effects of compounding and the daily re-leveraging or de-leveraging that occurs with L&LI ETFs can lead to unexpected results over the long term. As a result, we believe longer-term investors should consider regularly rebalancing positions. 4) Trendless markets, particularly those with a high level of volatility, can lead to substantial relative underperformance of L&LI ETFs. 2) Leveraged and Leveraged Inverse (L&LI) ETFs typically utilize futures and equity swap agreements. The use of these derivative instruments increases risk and enhances the possibility of tracking error. Relative to traditional ETFs, leveraged, inverse and leveraged inverse ETFs typically have higher costs and lower tax efficiency. 3) The effects of compounding can lead to significant deviations from traditional benchmarks over longer time periods. For example, if $100,000 is invested in an index that increases in value by 10% on day one and then decreases in value by 10% on day two, the investment will be worth $110,000 at the end of day one and $99,000 after day two. However, the value of a security that doubles the daily performance of the index would be worth $120,000 on day one and $96,000 after day two. Thus, the index is down 1% after two days, a doubling of which would be down 2%. However, the security attempting to double the return of the index is down 4%. Investors should consider carefully the potential impact over longer periods. MLP and MLP ETF Risks Individual MLPs are publicly traded partnerships that have unique risks related to their structure. These include, but are not limited to, their reliance on the capital markets to fund growth, adverse ruling on the current tax treatment of distributions (typically mostly tax deferred), and commodity volume risk. For tax purposes, MLP ETFs are taxed as C corporations and will be obligated to pay federal and state corporate income taxes on their taxable income, unlike traditional ETFs, which are structured as registered investment companies. These ETFs are likely to exhibit tracking error relative to their index as a result of accounting for deferred tax assets or liabilities (see funds prospectuses). The potential tax benefits from investing in MLPs depend on their being treated as partnerships for federal income tax purposes and, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund s value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV; and, as a result, the MLP fund s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Commodity ETF Risks Commodity ETFs may be subject to greater volatility than traditional ETFs and can be affected by increased volatility of commodities prices or indexes as well as changes in supply-anddemand relationships, interest rates, monetary and other governmental policies, or factors affecting a particular sector or commodity. Currency ETF Risks Investing in foreign markets entails greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions. In addition, international investing entails greater risk, as well as greater potential rewards compared to U.S. investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economies. 11

12 Important Disclosures The information and opinions in Morgan Stanley Wealth Management Research were prepared by Morgan Stanley Smith Barney LLC under its trade name Morgan Stanley Wealth Management. For important disclosures (including copies of historical disclosures) regarding the securities and/or companies that are the subject of this Morgan Stanley Wealth Management Research product, please contact Morgan Stanley Wealth Management Research, 522 Fifth Ave., New York, N.Y , Attention: Research Management. In addition, the same important disclosures, with the exception of the historical disclosures, are contained on the Firm's disclosure website at Historical disclosures will be provided upon request back to June 1, Morgan Stanley Wealth Management Analyst Certification The Morgan Stanley Wealth Management research analysts principally responsible for the preparation and content of all or any identified portion of this research report, hereby certify that their views about the securities and/or companies discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Unless otherwise stated, the individuals listed on the cover page of this report are Morgan Stanley Wealth Management research analysts. Global Research Conflict Management Policy Morgan Stanley Wealth Management has a Conflict Management policy available at: Important US Regulatory Disclosures on Subject Issuers The following analyst or strategist (or a household member) owns securities (or related derivatives), ETFs, or Closed-End funds that he or she covers or recommends in Morgan Stanley Wealth Management Research: John Duggan - CurrencyShares Japanese Yen Trust, First Trust ISE-Revere Natural Gas Index, ishares Gold Trust, ishares MSCI Brazil Capped ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Switzerland Capped ETF, ishares National AMT-Free Muni Bond ETF, ishares Russell 3000 ETF, ishares Silver Trust, PowerShares DB Agriculture Fund, PowerShares DB US Dollar Index Bearish Fund, SPDR Dow Jones Industrial Average ETF, SPDR Gold Trust, Vanguard FTSE All-World ex-us ETF. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate received compensation for investment banking services from the following issuers (if the security is an ETF or Closed- End Fund, the compensation is from the fund's investment manager or advisor): Columbia Beyond BRICs ETF, Columbia India Consumer ETF, EGShares Emerging Markets Consumer ETF, FlexShares Morningstar Global Upstream Natural Resources. In the next 3 months, Morgan Stanley Wealth Management or an affiliate will seek compensation for investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, Energy Select Sector SPDR, Fidelity Limited Term Bond ETF, Financials Select Sector SPDR, First Trust Dow Jones Internet Indx Fund, First Trust Global Tactical Commodity Strategy Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Long/Short Equity ETF, First Trust Mid Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, First Trust Preferred Securities and Income ETF, First Trust Tactical High Yield ETF, First Trust Value Line Dividend Index Fund, FlexShares Morningstar Global Upstream Natural Resources, Fresco Dow Jones Euro STOXX 50 Fund, Health Care Select Sector SPDR, Industrials Select Sector SPDR, JPMorgan Diversified Return International Equity ETF, Market Vectors Agribusiness ETF, Market Vectors Brazil Small-Cap ETF, Market Vectors Emerging Mkts Local CCY, Market Vectors Global Alternative Energy, Market Vectors Gold Miners ETF, Market Vectors Hard Assets Producers ETF, Market Vectors High Yield Muni Index ETF, Market Vectors Indonesia Index ETF, Market Vectors Intermediate Muni Index, Market Vectors Junior Gold Miners ETF, Market Vectors Oil Services ETF, Market Vectors Pharmaceutical ETF, Market Vectors Russia ETF, Market Vectors Semiconductor ETF, Market Vectors Vietnam ETF, Materials Select Sector SPDR, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Low Duration Active ETF, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return Active ETF, Real Estate Select Sector SPDR, SPDR Barclays 1-3 Month T-Bill ETF, SPDR Barclays Convertible Bond ETF, SPDR Barclays High Yield Bond ETF, SPDR Barclays Intl Treasury Bond ETF, SPDR Barclays Municipal Bond ETF, SPDR Barclays Short Term Municipal Bond, SPDR Biotech ETF, SPDR Blackstone/GSO Senior Loan ETF, SPDR Bloomberg Barclays Short Term Corporate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, SPDR DB Intl Gov't Inflation-Protected, SPDR DoubleLine Total Return Tactical ETF, SPDR Dow Jones Global Real Estate ETF, SPDR Dow Jones Intl Real Estate ETF, SPDR Dow Jones REIT ETF, SPDR Oil & Gas Equipment & Services ETF, SPDR Oil & Gas Exploration & Production, SPDR Retail ETF, SPDR S&P 500 ETF, SPDR S&P 600 Small Cap ETF, SPDR S&P Bank ETF, SPDR S&P China ETF, SPDR S&P Dividend ETF, SPDR S&P Emerging Asia Pacific ETF, SPDR S&P Emerging Markets Small Cap ETF, SPDR S&P Homebuilders ETF, SPDR S&P International Dividend ETF, SPDR S&P International Small Cap ETF, SPDR S&P Metals & Mining ETF, SPDR S&P MidCap 400 ETF, SPDR S&P Pharmaceuticals ETF, SPDR S&P Regional Banking ETF, Technology Select Sector SPDR, 12

13 Utilities Select Sector SPDR, VanEck Vectors Egypt Index ETF, VanEck Vectors Morningstar Wide Moat ETF, VanEck Vectors Pre-Refunded Municipal Index ETF, Vanguard 500 Index Fund, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex-us ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate-Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Long-Term Bond ETF, Vanguard Long-Term Corporate Bond ETF, Vanguard Materials ETF, Vanguard Mid-Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small-Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF, Victory CEMP US 500 Enhanced Volatility Weighted Index ETF. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate managed or co-managed a public offering (or 144a offering) for: FlexShares Morningstar Global Upstream Natural Resources. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate has provided or is providing investment banking services to, or has an investment banking client relationship with, the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the relationship is with, the fund's investment manager or advisor): Columbia Beyond BRICs ETF, Columbia India Consumer ETF, Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, EGShares Emerging Markets Consumer ETF, Energy Select Sector SPDR, Fidelity Limited Term Bond ETF, Financials Select Sector SPDR, First Trust Dow Jones Internet Indx Fund, First Trust Global Tactical Commodity Strategy Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Long/Short Equity ETF, First Trust Mid Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, First Trust Preferred Securities and Income ETF, First Trust Tactical High Yield ETF, First Trust Value Line Dividend Index Fund, FlexShares Morningstar Global Upstream Natural Resources, Fresco Dow Jones Euro STOXX 50 Fund, Health Care Select Sector SPDR, Industrials Select Sector SPDR, JPMorgan Diversified Return International Equity ETF, Market Vectors Agribusiness ETF, Market Vectors Brazil Small-Cap ETF, Market Vectors Emerging Mkts Local CCY, Market Vectors Global Alternative Energy, Market Vectors Gold Miners ETF, Market Vectors Hard Assets Producers ETF, Market Vectors High Yield Muni Index ETF, Market Vectors Indonesia Index ETF, Market Vectors Intermediate Muni Index, Market Vectors Junior Gold Miners ETF, Market Vectors Oil Services ETF, Market Vectors Pharmaceutical ETF, Market Vectors Russia ETF, Market Vectors Semiconductor ETF, Market Vectors Vietnam ETF, Materials Select Sector SPDR, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Low Duration Active ETF, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return Active ETF, Real Estate Select Sector SPDR, SPDR Barclays 1-3 Month T-Bill ETF, SPDR Barclays Convertible Bond ETF, SPDR Barclays High Yield Bond ETF, SPDR Barclays Intl Treasury Bond ETF, SPDR Barclays Municipal Bond ETF, SPDR Barclays Short Term Municipal Bond, SPDR Biotech ETF, SPDR Blackstone/GSO Senior Loan ETF, SPDR Bloomberg Barclays Short Term Corporate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, SPDR DB Intl Gov't Inflation-Protected, SPDR DoubleLine Total Return Tactical ETF, SPDR Dow Jones Global Real Estate ETF, SPDR Dow Jones Intl Real Estate ETF, SPDR Dow Jones REIT ETF, SPDR Oil & Gas Equipment & Services ETF, SPDR Oil & Gas Exploration & Production, SPDR Retail ETF, SPDR S&P 500 ETF, SPDR S&P 600 Small Cap ETF, SPDR S&P Bank ETF, SPDR S&P China ETF, SPDR S&P Dividend ETF, SPDR S&P Emerging Asia Pacific ETF, SPDR S&P Emerging Markets Small Cap ETF, SPDR S&P Homebuilders ETF, SPDR S&P International Dividend ETF, SPDR S&P International Small Cap ETF, SPDR S&P Metals & Mining ETF, SPDR S&P MidCap 400 ETF, SPDR S&P Pharmaceuticals ETF, SPDR S&P Regional Banking ETF, Technology Select Sector SPDR, Utilities Select Sector SPDR, VanEck Vectors Coal ETF, VanEck Vectors Egypt Index ETF, VanEck Vectors Morningstar Wide Moat ETF, VanEck Vectors Pre-Refunded Municipal Index ETF, Vanguard 500 Index Fund, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex-us ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth, ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate-Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Long-Term Bond ETF, Vanguard Long-Term Corporate Bond ETF, Vanguard Materials ETF, Vanguard Mid-Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small-Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF, Victory CEMP US 500 Enhanced Volatility Weighted Index ETF. 13

14 Within the last 12 months, Morgan Stanley Wealth Management has received compensation for products or services other than investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): ALPS Sector Dividend Dogs ETF, Columbia Beyond BRICs ETF, Columbia India Consumer ETF, Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, Direxion Daily Financial Bear 3x Shares, Direxion Daily Financial Bull 3x Shares, EGShares Emerging Markets Consumer ETF, Energy Select Sector SPDR, Fidelity Limited Term Bond ETF, Financials Select Sector SPDR, First Trust Value Line Dividend Index Fund, FlexShares Morningstar Global Upstream Natural Resources, FlexShares STOXX Global Broad Infrastructure Index Fund, Goldman Sachs ActiveBeta Emerging Markets Equity ETF, Guggenheim BRIC ETF, Guggenheim BulletShares 2018 Corporate Bond ETF, Guggenheim China Small Cap ETF, Guggenheim Enhanced Short Duration Bond ETF, Guggenheim Multi-Asset Income ETF, Guggenheim Russell Top 50 Mega Cap ETF, Guggenheim S&P 500 Pure Growth ETF, Guggenheim S&P 500 Pure Value ETF, Guggenheim S&P Equal Weight ETF, Guggenheim S&P Global Water Index ETF, Guggenheim Solar ETF, Health Care Select Sector SPDR, Industrials Select Sector SPDR, IQ Global Resources ETF, IQ Hedge Multi-Strategy Tracker ETF, IQ Merger Arbitrage ETF, ishares 1-3 Year Credit Bond ETF, ishares 1-3 Year Treasury Bond ETF, ishares 3-7 Year Treasury Bond ETF, ishares 7-10 Year Treasury Bond ETF, ishares Agency Bond ETF, ishares Barclays 20 Year Treasury Bond F, ishares China Large- Cap ETF, ishares CMBS ETF, ishares Cohen & Steers REIT ETF, ishares Core High Dividend ETF, ishares Core MSCI EAFE ETF, ishares Core MSCI Emerging Markets ETF, ishares Core MSCI Total International Stock ETF, ishares Core S&P 500 ETF, ishares Core S&P Mid-Cap ETF, ishares Core S&P Small-Cap ETF, ishares Core Total US Bond Market ETF, ishares Core US Growth ETF, ishares Core US Value ETF, ishares Dow Jones U.S. ETF, ishares Edge MSCI Min Vol EAFE ETF, ishares Edge MSCI Min Vol Global ETF, ishares Edge MSCI Min Vol USA ETF, ishares Edge MSCI USA Momentum Factor ETF, ishares Edge MSCI USA Quality Factor ETF, ishares Europe ETF, ishares Floating Rate Bond ETF, ishares Global 100 ETF, ishares Global Consumer Discretionary ETF, ishares Global Consumer Staples ETF, ishares Global Energy ETF, ishares Global Financials ETF, ishares Global Healthcare ETF, ishares Global Industrials ETF, ishares Global Infrastructure ETF, ishares Global Materials ETF, ishares Global Tech ETF, ishares Global Telecom ETF, ishares Global Utilities ETF, ishares Gold Trust, ishares iboxx $ High Yield Corp Bond ETF, ishares iboxx $ Invt Grade Corp Bond ETF, ishares Intermediate Credit Bond ETF, ishares International High Yield Bond ETF, ishares International Treasury Bond ETF, ishares Intl Select Dividend ETF, ishares J.P. Morgan USD Emerging Mkts, ishares Latin America 40 ETF, ishares MBS ETF, ishares Micro-Cap ETF, ishares Morningstar Large-Cap Growth ETF, ishares Morningstar Large- Cap Value ETF, ishares Morningstar Mid-Cap Growth ETF, ishares Morningstar Mid-Cap Value ETF, ishares MSCI ACWI ETF, ishares MSCI ACWI ex U.S. ETF, ishares MSCI All Country Asia ex Japan ETF, ishares MSCI All Peru Capped ETF, ishares MSCI Australia ETF, ishares MSCI Brazil Capped ETF, ishares MSCI BRIC ETF, ishares MSCI Canada ETF, ishares MSCI Chile Capped ETF, ishares MSCI China ETF, ishares MSCI EAFE ETF, ishares MSCI EAFE Growth ETF, ishares MSCI EAFE Small-Cap ETF, ishares MSCI EAFE Value ETF, ishares MSCI Emerging Markets ETF, ishares MSCI Emerging Mkts Min Vol, ishares MSCI EMU ETF, ishares MSCI Europe Financials ETF, ishares MSCI France ETF, ishares MSCI Frontier 100 ETF, ishares MSCI Germany ETF, ishares MSCI Hong Kong ETF, ishares MSCI India ETF, ishares MSCI Indonesia ETF, ishares MSCI Israel Capped ETF, ishares MSCI Italy Capped ETF, ishares MSCI Japan ETF, ishares MSCI KLD 400 Social ETF, ishares MSCI Malaysia ETF, ishares MSCI Mexico Capped ETF, ishares MSCI Pacific ex Japan ETF, ishares MSCI Philippines ETF, ishares MSCI Poland Capped ETF, ishares MSCI Russia Capped ETF, ishares MSCI Singapore ETF, ishares MSCI South Africa ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Spain Capped ETF, ishares MSCI Sweden ETF, ishares MSCI Switzerland Capped ETF, ishares MSCI Taiwan ETF, ishares MSCI Thailand Capped ETF, ishares MSCI Turkey ETF, ishares MSCI United Kingdom ETF, ishares Nasdaq Biotechnology ETF, ishares National AMT-Free Muni Bond ETF, ishares North American Natural Resources, ishares North American Tech ETF, ishares North American Tech-Software ETF, ishares PHLX Semiconductor ETF, ishares Residential Real Estate Capped ETF, ishares Russell 1000 ETF, ishares Russell 1000 Growth ETF, ishares Russell 1000 Value ETF, ishares Russell 2000 ETF, ishares Russell 2000 Growth ETF, ishares Russell 2000 Value ETF, ishares Russell 3000 ETF, ishares Russell Mid-Cap ETF, ishares Russell Mid-Cap Growth ETF, ishares Russell Mid- Cap Value ETF, ishares S&P 100 ETF, ishares S&P 500 Growth ETF, ishares S&P 500 Value ETF, ishares S&P GSCI Commodity-Indexed Trust, ishares S&P Mid-Cap 400 Growth ETF, ishares S&P Mid-Cap 400 Value ETF, ishares S&P Small-Cap 600 Growth ETF, ishares S&P Small-Cap 600 Value ETF, ishares Select Dividend ETF, ishares Short Maturity Bond ETF, ishares Short Treasury Bond ETF, ishares Short-Term Natl AMT-Free Muni, ishares Silver Trust, ishares TIPS Bond ETF, ishares Transportation Average ETF, ishares U.S. Aerospace & Defense ETF, ishares U.S. Basic Materials ETF, ishares U.S. Broker-Dealers ETF, ishares U.S. Consumer Goods ETF, ishares U.S. Consumer Services ETF, ishares U.S. Energy ETF, ishares U.S. Financial Services ETF, ishares U.S. Financials ETF, ishares U.S. Healthcare ETF, ishares U.S. Home Construction ETF, ishares U.S. Industrials ETF, ishares U.S. Medical Devices ETF, ishares U.S. Oil & Gas Exp & Prod ETF, ishares U.S. Oil Equip & Services ETF, ishares U.S. Preferred Stock ETF, ishares U.S. Real Estate ETF, ishares U.S. Technology ETF, ishares U.S. Telecommunications ETF, ishares U.S. Utilities ETF, Market Vectors Agribusiness ETF, Market Vectors Brazil Small-Cap ETF, Market Vectors Emerging Mkts Local CCY, Market Vectors Global Alternative Energy, Market Vectors Gold Miners ETF, Market Vectors Hard Assets Producers ETF, Market Vectors High Yield Muni Index ETF, Market Vectors Indonesia Index ETF, Market Vectors Intermediate Muni Index, Market Vectors Junior Gold Miners ETF, Market Vectors Oil Services ETF, Market Vectors Pharmaceutical ETF, Market Vectors Russia ETF, Market Vectors Semiconductor ETF, Market Vectors Vietnam ETF, Materials Select Sector SPDR, Peritus High Yield ETF, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Low Duration Active ETF, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return Active ETF, PowerShares Build America Bond Portfolio, PowerShares BuyBack Achievers Portfolio, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Commodity Index Tracking, PowerShares DB Oil Fund, PowerShares DWA Emerging Markets Technical Leaders Portfolio, PowerShares Dynamic Large Cap Value, PowerShares Dynamic Large-Cap Growth, PowerShares Dynamic Market Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Financial Pref Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, 14

15 PowerShares Gbl Clean Energy Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Global Water Portfolio, PowerShares International Dividend Achievers Portfolio, PowerShares Multi-Strategy Alternative Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500 High Dividend Low Volatility Portfolio, PowerShares S&P 500 Low Volatility Portf, PowerShares Senior Loan Portfolio, PowerShares VRDO Tax-Free Wkly Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy, SPDR Barclays 1-3 Month T-Bill ETF, SPDR Barclays Intl Treasury Bond ETF, Technology Select Sector SPDR, Utilities Select Sector SPDR, VanEck Vectors Coal ETF, VanEck Vectors Egypt Index ETF, VanEck Vectors Morningstar Wide Moat ETF, VanEck Vectors Pre-Refunded Municipal Index ETF, Vanguard 500 Index Fund, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex-us ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate-Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Long-Term Bond ETF, Vanguard Long-Term Corporate Bond ETF, Vanguard Materials ETF, Vanguard Mid- Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small-Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF, Victory CEMP US 500 Enhanced Volatility Weighted Index ETF. Within the last 12 months, Morgan Stanley Wealth Management has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the agreement is with, the fund's investment manager or advisor): ALPS Sector Dividend Dogs ETF, BlackRock Intl Growth & Income Trust, Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, Direxion Daily Financial Bear 3x Shares, Direxion Daily Financial Bull 3x Shares, EGShares Beyond BRICs ETF, EGShares India Consumer ETF, Energy Select Sector SPDR, Fidelity Limited Term Bond ETF, Financials Select Sector SPDR, FlexShares Morningstar Global Upstream Natural Resources, FlexShares STOXX Global Broad Infrastructure Index Fund, Guggenheim BRIC ETF, Guggenheim BulletShares 2018 Corporate Bond ETF, Guggenheim China Small Cap ETF, Guggenheim Enhanced Short Duration Bond ETF, Guggenheim Multi-Asset Income ETF, Guggenheim Russell Top 50 Mega Cap ETF, Guggenheim S&P 500 Pure Growth ETF, Guggenheim S&P 500 Pure Value ETF, Guggenheim S&P Equal Weight ETF, Guggenheim S&P Global Water Index ETF, Guggenheim Solar ETF, Health Care Select Sector SPDR, India Fund, Industrials Select Sector SPDR, IQ Global Resources ETF, IQ Hedge Multi-Strategy Tracker ETF, IQ Merger Arbitrage ETF, ishares 1-3 Year Credit Bond ETF, ishares 1-3 Year Treasury Bond ETF, ishares 3-7 Year Treasury Bond ETF, ishares 7-10 Year Treasury Bond ETF, ishares Agency Bond ETF, ishares Barclays 20 Year Treasury Bond F, ishares China Large-Cap ETF, ishares Cohen & Steers REIT ETF, ishares Core High Dividend ETF, ishares Core MSCI EAFE ETF, ishares Core MSCI Emerging Markets ETF, ishares Core S&P 500 ETF, ishares Core S&P Mid-Cap ETF, ishares Core S&P Small-Cap ETF, ishares Core Total US Bond Market ETF, ishares Core US Growth ETF, ishares Core US Value ETF, ishares Dow Jones U.S. ETF, ishares Edge MSCI Min Vol EAFE ETF, ishares Edge MSCI Min Vol Global ETF, ishares Edge MSCI Min Vol USA ETF, ishares Edge MSCI USA Momentum Factor ETF, ishares Edge MSCI USA Quality Factor ETF, ishares Europe ETF, ishares Floating Rate Bond ETF, ishares Global 100 ETF, ishares Global Consumer Discretionary ETF, ishares Global Consumer Staples ETF, ishares Global Energy ETF, ishares Global Financials ETF, ishares Global Healthcare ETF, ishares Global Industrials ETF, ishares Global Infrastructure ETF, ishares Global Materials ETF, ishares Global Tech ETF, ishares Global Telecom ETF, ishares Global Utilities ETF, ishares Gold Trust, ishares iboxx $ High Yield Corp Bond ETF, ishares iboxx $ Invt Grade Corp Bond ETF, ishares Intermediate Credit Bond ETF, ishares International High Yield Bond ETF, ishares International Treasury Bond ETF, ishares Intl Select Dividend ETF, ishares J.P. Morgan USD Emerging Mkts, ishares Latin America 40 ETF, ishares MBS ETF, ishares Micro-Cap ETF, ishares Morningstar Large-Cap Growth ETF, ishares Morningstar Large-Cap Value ETF, ishares Morningstar Mid-Cap Growth ETF, ishares Morningstar Mid-Cap Value ETF, ishares MSCI ACWI ETF, ishares MSCI ACWI ex U.S. ETF, ishares MSCI All Country Asia ex Japan ETF, ishares MSCI All Peru Capped ETF, ishares MSCI Australia ETF, ishares MSCI Brazil Capped ETF, ishares MSCI BRIC ETF, ishares MSCI Canada ETF, ishares MSCI Chile Capped ETF, ishares MSCI China ETF, ishares MSCI EAFE ETF, ishares MSCI EAFE Growth ETF, ishares MSCI EAFE Small-Cap ETF, ishares MSCI EAFE Value ETF, ishares MSCI Emerging Markets ETF, ishares MSCI Emerging Mkts Min Vol, ishares MSCI EMU ETF, ishares MSCI Europe Financials ETF, ishares MSCI France ETF, ishares MSCI Frontier 100 ETF, ishares MSCI Germany ETF, ishares MSCI Hong Kong ETF, ishares MSCI India ETF, ishares MSCI Indonesia ETF, ishares MSCI Israel Capped ETF, ishares MSCI Italy Capped ETF, ishares MSCI Japan ETF, ishares MSCI KLD 400 Social ETF, ishares MSCI Malaysia ETF, ishares MSCI Mexico Capped ETF, ishares MSCI Pacific ex Japan ETF, ishares MSCI Philippines ETF, ishares MSCI Poland Capped ETF, ishares MSCI Russia Capped ETF, ishares MSCI Singapore ETF, ishares MSCI South Africa ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Spain Capped ETF, ishares MSCI Sweden ETF, ishares MSCI Switzerland Capped ETF, ishares MSCI Taiwan ETF, ishares MSCI Thailand Capped ETF, ishares MSCI Turkey ETF, ishares MSCI United Kingdom ETF, ishares Nasdaq Biotechnology ETF, ishares National AMT-Free Muni Bond ETF, ishares North American Natural Resources, ishares North American Tech ETF, ishares North American Tech-Software ETF, ishares PHLX Semiconductor ETF, ishares Residential Real Estate Capped ETF, ishares Russell 1000 ETF, ishares Russell 1000 Growth ETF, ishares Russell 1000 Value ETF, ishares Russell 2000 ETF, ishares Russell 2000 Growth ETF, ishares Russell 2000 Value ETF, ishares Russell 3000 ETF, ishares Russell Mid-Cap ETF, ishares Russell Mid-Cap Growth ETF, ishares Russell Mid-Cap Value ETF, ishares S&P 100 ETF, ishares S&P 500 Growth ETF, ishares S&P 500 Value ETF, ishares S&P GSCI Commodity-Indexed Trust, ishares S&P Mid-Cap 400 Growth ETF, ishares S&P Mid-Cap 400 Value ETF, ishares S&P Small-Cap 600 Growth ETF, ishares S&P Small-Cap 600 Value ETF, ishares Select Dividend ETF, ishares Short Maturity Bond ETF, ishares Short Treasury Bond ETF, ishares Short-Term Natl AMT-Free Muni, ishares Silver Trust, ishares TIPS Bond ETF, ishares Transportation Average ETF, ishares U.S. Aerospace & Defense ETF, ishares U.S. Basic Materials 15